claiming for expenss property fell through

[jpkeates]

A property developer (which is what I understand you mean by property trader) is either paying income tax on the growth already,
so the capital to revenue switch issue doesn't apply or running it as a ltd company business, where different tax rules apply anyway.

[Dan_Manchester]

We need to be careful about the advice given on the site in my opinion.

My understanding is that HMRC draw 2 'lines in the sand' in relation to property,:

- Property investor -> generally holding for long term and renting out
- Property trader -> Effectively buying and 'flipping' property for profit.

The former cannot claim for abortive costs the latter can.

[King_Maker]

The deductions for CGT are very restrictive - and abortive purchase fees are unlikely to qualify.

Nor are such expenses incidental costs of finance.

[jpkeates]

It's because they would have been capital costs had the transaction gone ahead
and they can't change to revenue because it didn't.

[Claymore]

The above has always been my understanding, but I was wondering if there are any HMRC documents to back this up.?

In my opinion, if HMRC regard letting properties as a business (as they do), I really would of thought, if you can prove the property which fell through was for the portfolio - they should allow the loss to go through as a legitimate business expense. It's just my own opinion.

[King_Maker]

Not for an individual.

Possibly for a limited company.

[rental]

Hi
Just wondering if you can offset for expenses such as valuation, solicitors fees if the purchase of the btl property falls through (I have other btls)